Over the last month, Amazon’s (NASDAQ: AMZN) stock experienced a significant upward trend, reaching the anticipated milestone of $200. Market analysts hold a positive outlook on this leading e-commerce entity’s future growth, particularly in the realm of artificial intelligence (AI) innovation.
With a pre-market increase of 0.66%, AMZN shares are expected to begin trading on July 11 at $199.88, bouncing back from a 0.16% decline over the past five days.
Short-term projections for AMZN stock’s price movement are somewhat conflicting, but analysts are anticipating a potential breakthrough in 2025 for this e-commerce giant.
Amazon poised to sustain robust growth in the upcoming quarter
TD Cowen, on July 10, reaffirmed its bullish stance on Amazon by revising the price target to $245 from $225 and retaining a “buy” recommendation.
The firm foresees a strong Q2 2024 performance with revenue estimated at $150.2 billion, reflecting an 11.8% year-on-year growth. This expansion is primarily attributed to significant advancements in Amazon Web Services (AWS) and advertising revenues, expected to increase by 16.6% and 22.0% year-over-year, respectively.
TD Cowen also predicts a considerable 98% year-over-year surge in operating income to $15.2 billion for the second quarter, surpassing consensus estimates by 20%.
These forecasts hinge on escalating gross profits, enhanced operational efficiencies, and advantages stemming from extended server longevity.
Amazon’s Prime Day potential as a positive driver for AMZN share price
According to MKM analyst Rohit Kulkarni as of July 9, conversations with a seasoned e-commerce veteran have reinforced the “buy” recommendation, along with a $210 price target for Amazon.
The industry veteran is bullish on Amazon’s Prime Day performance for the current year, expecting an acceleration compared to 2023 trends.
Last year, U.S. online sales during Prime Day climbed by 6.1% year-over-year to $12.7 billion, with Prime members purchasing over 375 million items globally, marking it as the most successful Prime Day on record.
Forecasts anticipate a 6% to 9% growth in Prime Day sales this year, with double-digit growth projected across nearly all segments in the second quarter and into the latter part of the year.
Overall, market sentiment remains overwhelmingly bullish, with all 42 surveyed experts rating AMZN stock as a “buy,” classifying it as a strong buy option.
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